Mercedes-Benz India sales decline for first time since 2012 in 2016

The decline of 2% in sales is the first time since 2012 when the company closed a year with negative numbers. However, it expects to bounce back and achieve a double-digit growth this year.Pankaj Doval | TNN | January 10, 2017, 08:10 IST

NEW DELHI: A double-digit growth in demand for SUVs saw Mercedes Benz nearly offset the impact of diesel ban in the Delhi-NCR region as the company closed 2016 with sales of 13,231 units, a shade lower than what it sold in the previous year.

The decline of 2% in sales is the first time since 2012 when the company closed a year with negative numbers. However, it expects to bounce back and achieve a double-digit growth this year.

Despite flat numbers, Mercedes retained its top position in the Indian luxury car market, ahead of compatriots Audi and BMW as well as Tatas-owned Jaguar Land Rover (JLR).

Audi, which sold 11,192 units in 2015, is understood to have suffered a significant decline in sales that are estimated to have fallen below the 10,000-unit mark. BMW continues to be in the third position, followed by JLR.

“It was a year full of challenges for us and we did face uncertainties, mainly due to the ban on diesel vehicles. However, a 20% growth in demand for off-roaders such as the GLE helped us keep volumes at nearly the same level as 2015,” Mercedes India MD & CEO Roland Folger told TOI.The legal action against larger diesel engines (in excess of 2,000cc) in Delhi-NCR saw the entire portfolio of Mercedes being banned for nearly 8 months last year.

The region contributes the largest share to the company’s sales, estimated at nearly 20%. Folger said a series of initiatives, including a higher focus on performance cars under the AMG brand, helped maintain demand.

The company, which edged past Audi in 2015 to regain the top premium position, was originally targeting a double-digit growth in 2016, but the diesel ban upset calculations.

“... the momentum was broken. We believe that the potential is there in 2017... we are confident of moving ahead.”

The company intends to have a series of launches this year, and the major one will be the new ‘E-Class’ sedan.